Austria-Hungary was in the worst military position. Their economy and army wasn’t as strong as the other 4 countries and they were suffering great problems within their empire. These problems were mostly caused by nationalism in the Balkan area. At this time nationalism was on a rise in Serbia and the Austrians were devoted to exterminating it.
The assassination of Francis Ferdinand and his wife on 28th of June provided the perfect excuse for the Austrians to occupy Serbia and wipe out the nationalist threat. It was widely thought by Austrian officials that the empires survival depended on getting rid of the threat. To ignore this situation and to let it be would mean diplomatic and racial humiliation. The Austrians believed that it was better to die honourably than to suffer diplomatic humiliation. In addition they didn’t expect Russia to intervene because it was fellow monarch that was killed.
Austria-Hungary knew she had the support of Germany due to the ‘blank cheque’ and the Kaiser assurance that Germany would support Austria in whatever measures she took against Serbia. They also assumed that Russia wouldn’t get involved without the support from France, which she was unlikely to obtain.
Austria, like Germany, didn’t believe that this would lead to a major European war; alternatively they expected it to stay localised.
Germany had been trying to establish herself as a major power for years and she thought that by supporting Austria she would make territorial gains as well as diplomatic ones. It is suggested by numerous historians, mainly Fischer, that Germany had been planning to go to war for years and that this was a perfect opportunity to start one. It was clear to the other powers that Germany had been making military plans but they didn’t see it as being a direct threat. Instead they built up there military size to match that of Germanys in case of a future war.
Germany, like Austria, couldn’t afford to experience another diplomatic humiliation as they had done in 1905 and 1911 during the Moroccan crisis
